However, after one year, the rate drops to 1 per cent. Alternatively, banks are offering top rates of as much as 6 per cent to current account holders prepared to commit to a separate regular savings plan.

These are different to ordinary savings accounts as a set sum must be paid in each month - which means you don’t get the headline rate on the total amount saved.

Instead, you only get paid interest on your savings as they gradually build up over 12 months.

This leads to you getting less interest after a year than if you’d deposited the cash in one go.

Best deals on regular savings plans linked to current accounts come from First Direct at 6 per cent for a year to its First Account holders putting in between £25 and £300 a month.

HSBC has a similar scheme for its Premier or Advance current account holders on savings up to £250 a month. It also pays 4 per cent on its Bank Account customers.

At the end of the year, make sure you move your savings into a tax-free cash Isa.